Bài giảng Business Law (13th edition) - Chapter 4: Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Foundations of American LawThe Nature of LawThe Resolution of Private DisputesBusiness and The ConstitutionBusiness Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking1McGraw-Hill/Irwin Business Law, 13/e© 2007 The McGraw-Hill Companies, Inc. All rights reserved.Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical ThinkingPAETRHC4“It is not what a lawyer tells me I may do; but what humanity, reason, and justice, tell me I ought to do.” Edmund Burke Learning ObjectivesBusiness EthicsEthical TheoriesCorporate Social ResponsibilityGuidelines for Ethical Decision MakingCritical Thinking4 - *Ethics is the study of how people should actEthics also refers to the values and beliefs related to the nature of human conductBusiness ethics seeks to balance the values of society with the goal of profitable operationTeleological ethical theories focus on the consequences of a decisionDeontological ethical theories focus on decisions or actions aloneBasics of Ethics4 - *Kantianism applies the categorical imperative: judge an action by applying it universallyModern Rights Theories soften Kant’s absolute duty approach, yet protects fundamental rights (a strength of the theory)Justice Theory declares that a society’s benefits and burdens should be allocated fairly among its membersMajor Ethics Theories4 - *Utilitarianism maximizes utility for society as a whole by a cost-benefit analysisProfit Maximization maximizes a company’s long-run profits within the limits of lawMajor Ethics Theories4 - *Business stakeholder standard of behavior determines whether an act is, or is not, ethical by examining interests of stakeholders with regard to a particular business actionSupports corporate social responsibilitySome laws, such as Sarbanes-Oxley Act, have forced some firms to adopt codes of ethics Stakeholder Standard4 - *Who and what are the business stakeholders for this college? What duties – if any – does a college owe to society?Question for Discussion4 - *Guidelines for Ethical Decision Making4 - *Ethical decision making requires critical thinking, or ability to evaluate arguments logically, honestly, and objectivelyCritical Thinking4 - *Fallacies in thinking: non sequitur, appeals to pity, false analogy, circular reasoning, argumentum ad populum, argumentum ad baculum, argumentum ad hominem, argument from authority, false cause fallacy, gambler’s fallacy, appeal to tradition, reductio ad absurdum, lure of the new, sunk cost fallacyCritical Thinking4 - *4 - *Test Your KnowledgeTrue=A, False = BTeleological ethical theories focus on the consequences of a decisionKantianism holds that a society’s benefits and burdens should be allocated fairly among its membersUtilitarianism attempts to maximize utility for society as a whole by a cost-benefit analysis4 - *Test Your KnowledgeTrue=A, False = BA non sequitur is a conclusion that does not follow from the factsArgumentum ad baculum is using past conduct to support an argument about future conductReductio ad absurdum is also referred to as the slippery slope fallacy.Argumentum ad populum is an emotional appeal to sympathy for victims4 - *Test Your KnowledgeMultiple ChoiceThe business stakeholder standard of behavior determines whether an act is, or is not, ethical by: (a) maximizing a company’s long-run profits within the limits of law(b) examining the interests of various interested parties with regard to a particular business action4 - *Test Your KnowledgeMultiple ChoiceIf a person assumes the thing the person is trying to prove, the person has made the following error in reasoning:(a) A false analogy(b) Argumentum ad hominem(c) Circular reasoning4 - *Test Your KnowledgeMultiple ChoiceJack said Firm X and Firm Y are both large telecommunications firms. Then Jack said Firm X had implemented The Process, so Firm Y should also implement The Process. Jack has made the following error in reasoning:(a) the sunk cost fallacy(b) the fallacy of utilitarianism(c) fallacy based on the lure of the new(d) a false analogy 4 - *Thought Question #1If your boss asked you to shred documents as part of a “routine document retention policy” and you knew the documents were important to a criminal investigation, what would you do? 4 - *Do corporations have a duty to society?This question has engendered ongoing debate for over a centuryThought Question #24 - *